“‘Sorry, Steve: Here’s Why Apple Stores Won’t Work,’ proclaimed a headline in BusinessWeek in May 2001,” Ana Swanson reports for The Washington Post. “Published the day after Apple opened its first retail store in Tyson’s Corner, Va., the opinion piece argued that Apple’s focus on a few products and a ‘perfectionist attention to aesthetics’ would limit the company’s appeal. ‘Apple’s problem is it still believes the way to grow is serving caviar in a world that seems pretty content with cheese and crackers,’ the article quotes former CFO Joseph Graziano as saying.”
“The author was not the only nay-sayer when it came to Apple’s new store idea. At the time, Apple’s strategy of opening expensive, airy retail stores to display just a handful of products seemed incredibly profligate for a growing brand with no retail experience — especially when more established consumer electronics chains were in decline,” Swanson reports. “Even in hindsight, it’s kind of crazy that Apple pulled off its unique store strategy – but clearly, it did. As Apple reports third quarter earnings after market close on Tuesday, the company has 265 stores in the U.S. and more than 400 worldwide. According to research company eMarketer, Apple’s stores generated sales of $5,009 per square foot in the 12 months leading up to May 2015, more than any other brand in the U.S., including Tiffany & Co.”
Read more in the full article here.
MacDailyNews Take: One more quote, if you don’t mind. It’s one of our all-time favs:
I give [Apple] two years before they’re turning out the lights on a very painful and expensive mistake. – David Goldstein, Channel Marketing Corp. President, commenting on Apple’s opening of retail stores, May 21, 2001
Overall sales at shopping malls with an Apple Store are 10% higher – March 11, 2015
Apple Stores dominate retail with double the sales per sq. ft. of nearest rival, Tiffany & Co. – November 13, 2012
Why authorities waive rents and taxes to land Apple Retail Stores – May 20, 2012